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Full-Text Articles in Business
Inventory Management Based On Target-Oriented Robust Optimization, Yun Fong Lim, Chen Wang
Inventory Management Based On Target-Oriented Robust Optimization, Yun Fong Lim, Chen Wang
Research Collection Lee Kong Chian School Of Business
We propose a target-oriented robust optimization approach to solve a multi-product, multi-period inventory management problem subject to ordering capacity constraints. We assume the demand for each product in each period is characterized by an uncertainty set, which depends only on a reference value and the bounds of the demand. Our goal is to find an ordering policy that maximizes the sizes of all the uncertainty sets such that all demand realizations from the sets will result in a total cost lower than a pre-specified cost target. We prove that a static decision rule is optimal for an approximate formulation of …
Optimizing (S, S) Policies For Multi-Period Inventory Models With Demand Distribution Uncertainty: Robust Dynamic Programming Approaches, Ruozhen Qiu, Minghe Sun, Yun Fong Lim
Optimizing (S, S) Policies For Multi-Period Inventory Models With Demand Distribution Uncertainty: Robust Dynamic Programming Approaches, Ruozhen Qiu, Minghe Sun, Yun Fong Lim
Research Collection Lee Kong Chian School Of Business
We consider a finite-horizon single-product periodic-review inventory managementproblem with demand distribution uncertainty. We formulate the problemas a dynamic program and prove the existence of an optimal (s, S) policy. Thecorresponding dynamic robust counterpart models are then developed for thebox and the ellipsoid uncertainty sets. These counterpart models are transformedinto tractable linear and second-order cone programs, respectively. Weillustrate the effectiveness and practicality of the proposed robust optimizationapproaches through a numerical study.
A Supply Chain Coordination Mechanism For Common Items Subject To Failure In The Electronics, Defense, And Medical Industries, Mikhail M. Sher, Seung-Lae Kim, Avijit Banerjee, Michael Paz
A Supply Chain Coordination Mechanism For Common Items Subject To Failure In The Electronics, Defense, And Medical Industries, Mikhail M. Sher, Seung-Lae Kim, Avijit Banerjee, Michael Paz
Michael Paz
Improved production processes, particularly miniaturization, have led to the development and use of non-reworkable items subject to failure in modern production environments. Coordinating supply chains for these items requires cooperation between suppliers and buyers in order to balance ordering/setup and holding costs among system partners. In this paper, we first determine optimal inventory policies for both the supplier and buyer. We then apply the bisection method to develop a mechanism which uses a common replenishment time to coordinate a supply chain consisting of a single supplier and n buyers. By utilizing this optimization framework, we minimize total system-wide costs and …